A delivery company called Meyers Grocery Home Delivery (MGH) has raised $3.5 million in Series A funding led by Alibaba Group Holding Ltd.
and Andreessen Horowitz.
The round, led by China’s SoftBank Group Corp., also includes investment from Fidelity Investments and the National Development and Reform Commission (NDRC).
The fund is led by Shunfeng Chen, who is the managing director of Meyers and an angel investor in the company.MGH’s CEO is Ma Jian, a former Chinese investment banker who now serves as a co-founder of the Chinese government-backed National Development Bank.
The group’s revenue rose more than 50% in 2017.
Meyers was founded in 2014 by Chen and his brother, Chen Changsheng, a partner at New America, which is one of the world’s largest non-government organizations focused on climate change.MG H has raised more than $1.2 billion from investors including SoftBank, Alibaba, Nasdaq OMX Group Inc., and Microsoft Corp., according to data from FactSet.
The fund also includes investments from a number of big names in the US food delivery market, including Whole Foods Market Inc. and Amazon.com Inc. Chen Changshend, who has been in the food delivery space for more than two decades, said the group aims to expand the delivery service to other areas of Chinese food delivery.
He said the company will focus on delivery in major cities, especially Beijing, Shanghai and Guangzhou.
The fund will use its investment to continue expanding its delivery capabilities in China.
MG H said it plans to expand its service in urban areas by leveraging its existing network and new technology.
Its mobile service will be based in the mainland and will be available for local delivery in areas where delivery is slow or nonexistent, the company said.